MTN Nigeria Considers "Introduction" Over IPO
MTN is exploring the best way to comply with a prior settlement requirement to list in the Nigerian Stock Exchange even when taking into considerations the challenging market conditions. The firm plans to do listing by introduction over pure IPO. Through the former, the firm will list existing shares in Nigeria. It is certainly a better trajectory for the firm than an IPO which largely will not add any real value under the cloudy conditions of $10 billion claims from the government.
Nonetheless, the best deal will be for MTN Nigeria to abandon listing, in 2018, and focus on its business: the short-term sentiment in the Nigerian market is negative until after the election. No one will be wiring funds from New York, London and Owerri to buy stocks at scale in Lagos. It should write the industry regulator, NCC, for a grace period. Q3 2019 should be optimal for this listing and it needs to do real IPO.
MTN Group Ltd., the wireless carrier facing a combined $10 billion in claims from Nigerian authorities, said it may no longer seek to raise capital through an initial public offering on the country’s stock exchange.
Africa’s largest mobile-phone company is considering other options of trading its shares on the Lagos-based bourse, including a so-called listing by introduction, in which existing shares are listed, Chief Financial Officer Ralph Mupita said in an interview in Johannesburg.
